MODULE NO 45-GENERAL MANAGEMENT

Chapter Outlines

1. Business Research Methods 2. Managerial Communication 3. Managerial Ethics 4. Analysis for Managerial Decision Making 5. Corporate Image Building 6. Emotional Intelligence and Managerial Effectiveness 7. Operational Research and Management 8. Human Resource Management

BUSINESS RESEARCH METHODS

Organizations use research, especially in market research activities. Market research is used to identify potential markets, the needs and wants of each, how those needs and wants can be met, how products and services could be packaged to be most accessible to customers and clients, the best pricing for those products and services, who the competitors are and how best to complete against each competitors, who may be the potential collaborators and how to collaborate with each. There may be many other applications of research. Businesses can choose between varieties of research methods to achieve these ends and few of them are discussed below.

1. Case Study

When businesses want a comprehensive understanding of how customers interact and respond to a product or service, they conduct case studies. Case studies aim to develop a complete assessment of customer satisfaction, product usage and customers attitudes about the product. For example, a book publishing company might conduct a case study about its new publication by distributing it to the professors /few students. Data gathering might include study of the results of books by taking the professors feedback through an interview or survey. This method allows for in-depth information collection, but it is typically time-consuming.

2. Surveys

A survey enables researchers to gather large amounts of data quickly and at a comparatively low cost. Survey is a business research method which is used extensively. A solid methodology and numerous samples put together make a sound survey that gathers relevant data. Disadvantages of surveys include people in the target market not responding, partially completed surveys and shallow information about the target market.

3. Interviews

An interview is quite similar to Surveys. Interviews often employ the same questions as those found on surveys, but it afford people the opportunity to respond at length. This approach typically yields deep information about one person’s experience with a product, service or company. The opportunity to ask follow-up questions to more fully grasp a person’s response is one of the key advantages to this research method. Interviews tend toward the time-intensive, and careless interviewers can bias interviewee answers.

4. Focus Groups

Focus groups typically consist of a small group of people consistent with a target market profile that discuss a product or service. Focus groups offer a kind of middle ground between other research methods. They provide a larger sample group than interviews or a case study, while taking advantage of the depth that interviews afford. As with interviews, however, the facilitator who directs the conversation can unintentionally skew answers in a particular direction, and analysis of the information collected during the focus group can prove difficult to analyze.

Business Research Process

Business Research process is a systematic process and requires a chronological order to follow. It starts with identification of problem and concludes with presentation of report. Its different steps are listed below

1. Identifying and Defining Problem/Opportunity 2. Planning the Research Design 3. Selecting a Research Method 4. Selecting a Sampling Procedure 5. Data Collection 6. Evaluating the Data 7. Preparing and Presenting the Research Report

MANAGERIAL COMMUNICATION

The new spirit of business must be marked by efficient managerial communication. To build, to develop and to run business means, first of all, to communicate, to transmit information, opinions and decisions and, at the same time, to receive answers to such. In practice, the manager is required to have certain qualities that are indispensable for the managerial activity, and the ability to communicate efficiently is one of them. Under the pressure of the changes occurring in the business environments, of the ever-growing complexity of business and of the managers’ responsibilities, the topic of managerial communication is of large interest.

Meaning and Significance Interest has been shown in the art of communication since the classical age, the Greeks being those who developed specific communication methods and techniques that conferred it the status of science. In the contemporary age, the theory of communication has known an impressive growth, being a major preoccupation for many specialists in extremely different domains (psychology, philosophy, marketing and public relations, management etc.). Along the time the concept of communication has been ascribed numerous and very different meanings. In the specialty literature the exact meaning of the notion is still vividly debated, the approach perspectives and the tackling methods being varied. In Dance F.’s opinion (1970, p. 36), communication is the process of sending a message, via a communication channel, towards a receptor, whereas Abraham Moles (1974, p. 64) understands communication “as establishing univocal correspondence between a space and time A- transmitter universe and a space and time B – receiver universe which includes the notion of understanding, transfer and which takes place from the field of phenomena to the field of symbols connected in a structure”. To define communication as an exchange of messages between a transmitter and a receptor is the simplest reflection of the essence of this process. Managerial communication has a special status, which derives from the organizational framework in which it is performed, from its goals, purpose and role. It represents the decisive means by which the manager fulfils his/her tasks and duties and employs the competences and skills pertaining to his/her role in the company and in the relations with the business partners. The manager sends information to the members of the organization and the business partners, and their response influences his/her decisions and behaviour. The quality of the communication channels, formal or informal, depends on the functionality of the communication system. This system needs to be conceived as a dynamic organism, capable of adapting to the information needs of the company at any moment, at all the levels and in all senses, laying the stress on the problems that influence and condition its normal functioning. Within the company, the individual and the group performance of the employees while fulfilling tasks largely depends on the quality of the managerial communication process. The manager communicates for the purpose of sending and receiving information, of triggering the adequate answers and, implicitly, of influencing the receptors’ decisions and their response to the transmitted messages. The efficient management of the communication process when acting as a contact person who ensures interpersonal communication with the employees in the company, but also with the business partners, outside the company, is a tough responsibility for a manager, and the way he/she fulfils it is decisive for the good business and the success of the company. On one hand, the manager needs to inform all the employees with respect to the company mission and goals, the costs of such, the quality and economy issues, the tasks that need to be fulfilled to attain the set goals. The manager is also interested to get information on the way in which such tasks are fulfilled, suggestions and opinions on the well-being of the company, as seen by the employees. At the same time, the members of the managerial team must exchange information with regard to the main technical, economic and social

problems of the company, to the management techniques and methods that need to be used to increase the efficiency of the activity. Thus, a system of reciprocal cooperation is created, which facilitates for the fundamental objectives of the company to be attained. Managerial communication acts as an integrating factor of the relations from inside the company, as well as those from outside the company, with the business partners, pursuing to harmonize interests and creating the premises needed to attain the set goals. Competitive companies have understood this, and have promoted communicative competence as a philosophy assumed by the management and the entire team. In many such companies, communication is considered to be and is used as one of the most valuable instruments of managerial strategy. At the opposite pole, the defective transmission of information, communication breakdowns and the lack of transparency and honesty most often account for business failure. MANAGERIAL ETHICS A complex workplace can be transformed into a less-complicated landscape when thought is given to establishing some ground rules. Companies that incorporate a set of managerial ethics or guidelines create a clear path for managers to reference during tough decision-making scenarios. Creating a managerial code of conduct requires some basic information on what ethics are, examples of what might be included and ideas about how to establish managerial ethics in the workplace.

Ethics are the moral codes that govern behavior of a person or group of people regarding what is right and wrong. These moral codes revolve around established values and principles and may not be the same from culture to culture. Ethics point the way to a particular course of action defining acceptable behaviors and choices. Managerial ethics are a set of standards that dictate the conduct of a manager operating within a workplace.

There are no legal rules or laws that are directed specifically at managers. Instead, an ethics code is assembled by a company to guide its managers. Such a code of conduct typically references shared values, principles and company policies about basic conduct and outlines the duties a manager has to his employees, the company and the company's stakeholders. Although not enforceable by law, managers who consistently ignore certain company ethics may be asked to step down, be moved into another position or fired.

Managerial ethics usually address two separate areas: principles and policies. Principle-based ethics outline what is considered fair and ethical in the scope of the workplace and might include information about departmental boundaries or use of company equipment. Policy-based managerial ethics refer to conflicts of interest, the right response to gifts from vendors or business partners, or the handling of proprietary information.

Managerial ethics help to guide decision making and regulate internal and external behavior. Ethical dilemmas typically arise from a conflict between an individual or group and the company, division or department as a whole. Companies establishing a set of values and norms that are acknowledged by managers and consistently referenced during the work day have created an ethical platform by which managers can operate and make decisions. Training managers on the specifics of managerial ethics by role play, case study and group discussion may set the stage for ethical behavior.

ANALYSIS FOR MANAGERIAL DECISION MAKING

Decision making is the process by which managers analyze the options facing them and make determinations about specific organizational goals and courses of action. A good decision results in the selection of appropriate goals and courses of action that increase organizational performance.

Analysis is an integral part of managerial decision making process. A managerial makes different types of analysis in decision making process. The analysis may be quantitative analysis, transaction analysis or qualitative analysis.

Quantitative techniques help a manager improve the overall quality of decision making. These techniques are most commonly used in the rational/logical decision model, but they can apply in any of the other models as well. Among the most common techniques are decision trees, payback analysis, and simulations. Decision trees

A decision tree shows a complete picture of a potential decision and allows a manager to graph alternative decision paths. Decision trees are a useful way to analyze hiring, marketing, investments, equipment purchases, pricing, and similar decisions that involve a progression of smaller decisions. Generally, decision trees are used to evaluate decisions under conditions of risk.

The term decision tree comes from the graphic appearance of the technique that starts with the initial decision shown as the base. The various alternatives, based upon possible future environmental conditions, and the payoffs associated with each of the decisions branch from the trunk.

Decision trees force a manager to be explicit in analyzing conditions associated with future decisions and in determining the outcome of different alternatives. The decision tree is a flexible method. It can be used for many situations in which emphasis can be placed on sequential decisions, the probability of various conditions, or the highlighting of alternatives.

Payback analysis

Payback analysis comes in handy if a manager needs to decide whether to purchase a piece of equipment. Say, for example, that a manager is purchasing cars for a rental car company. Although a less‐expensive car may take less time to pay off, some clients may want more luxurious models. To decide which cars to purchase, a manager should consider some factors, such as the expected useful life of the car, its warranty and repair record, its cost of insurance, and, of course, the rental demand for the car. Based on the information gathered, a manager can then rank alternatives based on the cost of each car. A higher‐priced car may be more appropriate because of its longer life and customer rental demand. The strategy, of course, is for the manager to choose the alternative that has the quickest payback of the initial cost.

Many individuals use payback analysis when they decide whether they should continue their education. They determine how much courses will cost, how much salary they will earn as a result of each course completed and perhaps, degree earned, and how long it will take to recoup the investment. If the benefits outweigh the costs, the payback is worthwhile.

Simulations

Simulation is a broad term indicating any type of activity that attempts to imitate an existing system or situation in a simplified manner. Simulation is basically model building, in which the simulator is trying to gain understanding by replicating something and then manipulating it by adjusting the variables used to build the model.

Simulations have great potential in decision making. In the basic decision‐making steps, Step 4 is the evaluation of alternatives. If a manager could simulate alternatives and predict their outcomes at this point in the decision process, he or she would eliminate much of the guesswork from decision making.

Importance of Quantitative Analysis in decision making That quantitative analysis is vital in the decision making process for following reasons 1. Quantitative analysis provides considerable insight into the ways numerical

information can be generated and presented to aid decision-making. 2. It helps the decision maker to state his research problem in very specific and clear

terms. 3. It helps in identifying and quantifying the relationship between variables that

determine the outcome of a decision and its alternatives. 4. It provides a clearer and broader view of the available alternatives. 5. It minimizes subjectivity and enhances the chances of making objective decisions. 6. It allows for simulation and analysis of real problems (scenarios) thereby assisting

the decision-maker to mitigate risks before they occur.

7. It enables the decision-makers to make quality decisions not based on hunch or intuition, but on analysis of data obtained

8. Quantitative analysis provides data–driven analytical techniques or models for a range of business challenges and can be applied in the decision-making process of several business areas and sectors such as the environment (using optimization models for pollution control), medicine (using linear programming model for AIDS patients’ admission), auto industry (using game theory to shape marketing strategy) etc

9. Prediction or forecasting: forecasting is the art and science of predicting future events such as estimating the future value of a time series (e.g. demand for a product).

Qualitative Analysis in Decision Making

Qualitative characteristics are the factors in a decision problem that cannot be

expressed effectively in numerical terms. To illustrate, suppose Worldwide Airways’ top management is considering the elimination of its hub operation in London. Airlines

establish hubs at airports where many of their routes intersect. Hub operations include facilities for in-flight food preparation, aircraft maintenance and storage, and

administrative offices. A careful quantitative analysis indicates that Worldwide Airways’ profit-maximizing alternative is to eliminate the London hub. In making its decision,

however, the company’s managers will consider such qualitative issues as the effect of the closing on its London employees and on the morale of its remaining employees in

the airline’s Paris, Atlanta, and Tokyo hubs. To clarify what is at stake in such qualitative analyses, quantitative analysis can

allow the decision maker to put a “price” on the sum total of the qualitative characteristics. For example, suppose Worldwide Airways’ controller gives top

management a quantitative analysis showing that elimination of the London hub will increase annual profits by $2,000,000. However, the qualitative considerations favor the

option of continuing the London operation. How important are these qualitative considerations to the top managers? If they decide to continue the London operation,

the qualitative considerations must be worth at least $2,000,000 to them. Weighing the quantitative and qualitative considerations in making decisions is the essence of

management. The skill, experience, judgment, and ethical standards of managers all come to bear on such difficult choices.

BUILDING CORPORATE IMAGE

Today companies must make reputation management a fundamental part of their

corporate culture and value system. Companies must spread the message of reputation

management throughout the organization and make employees cognizant of how each

and every one of them affects reputation on a daily basis.

In the highly competitive arena of leisure management industry, companies that aim to

stay ahead of the competition should renovate their strategies as an attempt to offer

value to their customers. A major tool to reach this perspective is to have a strong

corporate reputation, which in return will have a positive impact on the way such firms

“differentiate” their services. Implementation of such strategies may also have a critical

outcome to the marketing success as well.

THE CONCEPT OF CORPORATE REPUTATION

As a result of globalization, competition has been on the rise and product life cycles

have been shortened. Besides it is becoming harder to differentiate between goods and

services. In this arena, customers make the choice and companies try to find several

differentiation strategies .

A company which has formed its corporate culture can cope with its competitors more

efficiently. Corporate identity and corporate image are the two major tools that play a

major role in the formation of corporate reputation. In this sense, corporate identity is

the symbols (such as logos, color scheme) an organization uses to identify itself to

people. On the other side, corporate image is the total impression (beliefs and feelings)

an entity ( an organization, country or brand) makes on the minds of people. Overall,

corporate reputation is the evaluation (respect, esteem, estimation) in which an

organization’s image is held by people. So, corporate identity recalls and enhances the

corporate image to form the reputation of an organization. In marketing terms, it is a

matter of perception by the customers.

REPUTATION QUOTIENT AS A MEANS TO FORM EFFECTIVE REPUATION MEASURES

In their book “Fame and Fortune”, the authors, Fombrun and Van Riel establish six

competitive measures which are crucial to the overall standing of companies in global

perspectives.

The study points out six dimensions which are as given below

1- Emotional appeal: A good reputation should be able to emotionally appeal to

the customers, thus it should even bring loyalty in the long run.

2- Products and services: A good reputation could only be established provided

that the company offers high quality, innovative, reliable goods and services, or a

good value for the money.

3- Financial Performance: If the company’s profitability is well, most customers

perceive that it has strong future prospects and believe that it is not too risky to

invest in. So, this strategy brings a good reputation to the company and its

stakeholders as well.

4- Vision and leadership: If consumers agree upon the fact that the company has

a clear vision for the future and strong leadership, such company may be doing

well in the formation of its reputation management.

5- Workplace environment: If the company is well managed, has topnotch

employees, and would be great to work for, then it is identified that the company

has a view of good corporate reputation.

6- Social responsibility: A major tool of a good reputation management is to

become a good citizen as a company. A social responsible company should

support good causes, protect the environment, and do right by local

communities. A company which is known as socially responsible can be

perceived as a good example of a reputable company.

BUILDING CORPORATE IDENTITY and CORPORATE IMAGE

Corporate identity is different from corporate image in many ways. These two

terminologies are misconceptualized and many times mixed with corporate reputation

as well. Corporate image is mostly based on thoughts; however corporate identity is

linked with physical concept. Corporate image identifies what public thinks of the

organization; on the other hand corporate identity is linked with how they perceive the

organization.

The formation of the corporate identity includes its visual identity. The basic building

blocks of an organization’s visual identity are its name, logo or symbol, color scheme,

and type font. Sometimes, the company’s building architecture; its location, the internal

decor of offices, and the uniform of employees play a major role in this process as well.

If the corporate name sounds good to ear, then it is likely that it will communicate well in

any medium. It is also important not to use company initials. The name should be easy

to be pronounced and firms should try to avoid names beginning with the country name

(Dowling, 2001). The logo is often the most distinctive point of eye contact that

employees and guests have with an organization’s visual identity symbols. On the other

side, the cultural context within which a color is used can be an important factor to

consider.

Mentioning all the above theoretical background, a good reputation helps a firm

- to add extra psychological value to the products and services

- to help reduce the risk customers perceive when buying products and services

- to help choose between products and services

- to act as a powerful signal to the competitors

- to support new product introductions (Dowling, 2001).

THE RELATIONSHIP BETWEEN BRAND FORMATION AND CORPORATE REPUTATION

As companies attempt to differentiate their goods services from each other, a major tool

has been to move towards brand formation. Companies who have a strong corporate

reputation invest in forming its brands as a means to beat the competition. Companies

with a solid corporate culture can be able to easily create their own brand. Basic

principles of branding and brand equity are as follows:

- Differences in outcomes arise from the added value endowed to a product as a

result of past marketing activity for the brand

- This value can be created for a brand in many different ways

- Brand equity provides a common denominator for interpreting marketing

strategies and assessing the value of a brand

- There are many different ways in which the value of a brand can be manifested

or exploited to benefit the firm

BUILDING A STRONG BRAND: FOUR STEPS OF BRAND BUILDING

A strongly structured brand can have a positive influence on the corporate reputation as

well. It enhances the reputation and thus, there can be a win-win situation in where

brands can benefit from the corporate culture. In literature, it is stated that there are four

steps to building a strong brand (Keller, 2003).

1- Ensure identification of the brand with customers and an association of the brand in

customer’s minds with a specific product class or customer need.

2- Firmly establish the totality of brand meaning in the minds of customers, by

strategically linking a host of tangible and intangible brand associations with certain

properties.

3- Elicit the proper customer responses to this brand identification and brand meaning.

4- Convert brand response to create an intense, active loyalty relationship between

customers and the brand.

Having detected the above mentioned information from the literature, it can be implied

that such information has an intensive link with corporate reputation in many ways. First

of all, brand identity ( who are you?), brand meaning ( what are you?), brand responses

( what do I think about you?), and brand relationships ( what about you and me?) are

the critical elements of corporate reputation as a part of brand formation.

REPUTATION MARKETING- A LINK BETWEEN REPUTATION AND MARKETING

Companies that have a good reputation are able to market their goods and services in a

more convenient and cost effective way. A major outcome of marketing is to offer value

to its customers and provide loyalty among them. As it becomes harder to differentiate

between goods and services, corporate reputation has been a key factor in dealing with

customers.

Reputation marketing has emerged as an era of specialization among public relations

professionals and marketing consultants. A closer look at the subject reveals marked

similarities to the practice of corporate image management, and in some instances,

brand management as well. Reputation marketing is a guide to creating a focused

brand or corporate public relations philosophy , as well as a plan of action. A reputation,

good or bad, casts a shadow far and wide that can help or hurt a company or brand.

Reputation can affect the bottom line- in every sense of the term. This is about

recognizing the fact and making a difference (Marconi, 2001).

Based on the book by Marconi, basic rules for building a reputation is as follows

(Marconi, 2001):

- How you look and what you do create an image. Images, over time, create a

reputation.

- Through your advertising, public relations, package design, delivery system,

unique selling points, presentation, performance, and quality of service, you must

position yourself in the market place.

- Tell people who you are, tell them what you do, tell them why they should care.

- A marketing effort is the time, place, and program that should be used to promote

quality, cost, value, and your best and most unique characteristics- the features

that set you apart from everyone else.

- Make the public want to get closer look at you, to know more about you.

EMOTIONAL INTELLIGENCE AND MANAGERIAL EFFECTIVENESS

Emotional intelligence is the ability to recognize and manage own and others’ emotions, to motivate oneself and restrain impulses, and to handle interpersonal relationships effectively. 

Salovey and Mayer define “Emotional Intelligence “as the ability to recognise the meanings of emotions and their relationships and to reason and problem-solve based on them”. Emotional Intelligence is seen as the capacity to perceive emotions, assimilate emotion-related feelings, understand the information of those emotions, and manage them.  

Emotional Intelligence was popularized by psychologist and journalist Daniel Goleman in his book “Emotional Intelligence”. Goleman changed the definition quite substantially with the new definition appearing to equate emotional intelligence with good social behavior. Emotional Intelligence is now used popularly to mean various things, including motivation, empathy, sociability, warmth, and optimism. Mayer and Salovey in his book argue that there are two major emotional intelligence models that drive research: (1) Ability models and (2) mixed models. Ability models conceptualise emotional intelligence in a similar way to cognitive intelligence (i.e., Intelligence Quotient - IQ). These models suggest that emotional intelligence should develop over time, be correlated with measures of IQ, and be measurable with a test based on performance. In contrast, mixed models of emotional intelligence incorporate both non-cognitive and competency-based models. These mixed models typically overlap or ‘mix’ with traditional models of personality and tend to utilise self-reports as their primary mode of assessment. Importantly, while each approach conceptualises and measures emotional intelligence from different perspectives, the approaches themselves appear to complement rather than contradict each other. For example, both mixed and ability based measures of emotional intelligence have been shown to be only modestly related to each other and to relate to important criteria such as social support, mental health, and social behavior. Leadership Effectiveness and Emotional Intelligence One study was done to establish the extent to which mixed and ability based measures of emotional intelligence were useful for predicting leadership effectiveness over and above traditional personality and cognitive ability measures.

People have theorized that emotional intelligence contributes to people’s capacity to work effectively in teams, manage stress, and/or lead others . For example, leaders who are poor at perceiving their emotions may unknowingly miss important emotional signals from their co-workers. Similarly, leaders who are poor at managing emotions may allow their emotions to interfere with effective action. For instance, when they feel anxious, they may avoid giving an important speech, or when they feel angry, they may inappropriately lash out at a co-worker.

The transformational/transactional leadership model of Bass and Avolio has provided the general framework for most of the research on Emotional Intelligence and leadership effectiveness. Transformational leaders are seen as those people that are able to create a vision, communicate this vision, build commitment amongst subordinates to the vision, and model the vision within the workplace. In contrast, transactional leaders are viewed more as managers that maintain the status quo. It is argued that transformational leaders are able to deal with strategic matters more efficiently and in turn are able to build commitment in employees, and are therefore more likely to take an organization forward.

Barling, Slater and Kelloway conducted an exploratory study on the relationship between Emotional Intelligence and transformational leadership. Their results suggest that self-reported Emotional Intelligence is associated with three aspects of transformational leadership, namely idealised influence, inspirational motivation and individualised consideration. The leaders who report exhibiting these behaviours were assumed to be more effective in the workplace.

WHY IT MATTERS: Effective leaders take account of their personal limitations, through self management, or by positioning other people with the right strengths to take the lead in some situations.

Level 1 Level 2 Level 3 Level 4 Demonstrates awareness of own feelings Manages own responses and reactions carefully when faced with demanding situations Behaves consistently with own stated beliefs and values Aware of own strengths and weakness

Understands the nature and causes of their emotional reactions to particular situations Takes conscious steps to manage own emotions and pressure when necessary Creates an environment of openness, cutting through ambiguity to provide clarity in communication Reflective, learning from

Understands the likely implications and impact of your emotions, both on self and others in a range of situations Stands up for what is right in terms of leading and developing services, even when it is difficult to do so, and there may be a personal cost in doing so Open to candid feedback, new

Learns from experience how behaviour is received by others and applies necessary change in all future circumstances Acting as a role model in terms of adhering to the Council’s values Acts on feedback and develops self and can demonstrate improvement as a result

experience perspectives, continuous learning, and self-development

OPERATIONAL RESEARCH AND MANAGEMENT

The term Operations Research (OR) describes the discipline that is focused on the application of information technology for informed decision-making. In other words, OR represents the study of optimal resource allocation. The goal of OR is to provide rational bases for decision making by seeking to understand and structure complex situations, and to utilize this understanding to predict system behavior and improve system performance. Much of the actual work is conducted by using analytical and numerical techniques to develop and manipulate mathematical models of organizational systems that are composed of people, machines, and procedures. OR Activities OR’s role in both, the public and the private sectors is increasing rapidly. In general, OR addresses a wide variety of issues in transportation, inventory planning, production planning, communication operations, computer operations, financial assets, risk management, revenue management, and many other fields where improving business productivity is paramount. In the public sector, OR studies may focus on energy policy, defense, health care, water resource planning, design and operation of urban emergency systems, or criminal justice. To reiterate, OR reflects an analytical method of problem solving and decision-making that is useful in the management of organizations. In OR, problems are (1) decomposed into basic components and (2) solved via mathematical analysis. Some of the analytical methods used in OR include mathematical logic, simulation, network analysis, queuing theory, and game theory. The actual OR process can in general be described via three steps. (1) A set of potential solutions to a problem is identified and developed (the set may be rather large). (2) The alternatives derived in the first step are analyzed, and reduced to a smaller set of solutions (the solutions have to be feasible and workable). (3) The alternatives derived in the second step are subjected to simulated implementation and, if feasible, exposed to an actual analysis in a real-world environment. It has to be pointed out that in the final step, psychology and management sciences often play a rather important role. Generally speaking, OR improves the effectiveness and the efficiency of an institution, hence some of the benefits offered by OR include: • Decrease Cost or Investment • Increase Revenue or Return on Investment

• Increase Market Share • Manage and Reduce Risk • Improve Quality • Increase Throughput while Decreasing Delays • Achieve Improved Utilization form Limited Resources • Demonstrate Feasibility and Workability OR Functions and Methods OR may assist decision-makers in almost any management function. To illustrate, OR supports the key decision making process, allows to solve urgent problems, can be utilized to design improved multistep operations (processes), setup policies, supports the planning and forecasting steps, and measures actual results. OR can be applied at the non-manager levels as well, as engineers or consumers alike can benefit from the improved and streamlined decision-making process. When first encountered, the methods commonly utilized in OR may seem obscure. Technical labels such as multi-criteria decision analysis, linear and non-linear programming, and discrete-event Dominique A. Despite the wealth of labels available in the field of OR, most projects apply one of three broad groups of methods, which may be described as: 1. Simulation methods, where the goal is to develop simulators that provide the

decision-maker with the ability to conduct sensitivity studies to (1) search for improvements, and (2) to test and benchmark the improvement ideas that are being made.

2. Optimization methods, where the goal is to enable the decision maker to search among possible choices in an efficient and effective manner, in environments where thousands or millions of choices may actually be feasible, or where some of the comparing choices are rather complex. The ultimate goal is to identify and locate the very best choice based on certain criteria’s.

3. Data-analysis methods, where the goal is to aid the decision-maker in detecting

actual patterns and inter-connections in the data set. This method is rather useful in numerous applications including forecasting and data mining based business environments.

Within each of the three basic groups, many probabilistic methods provide the ability to assess risk and uncertainty factors.

Different Techniques used in Operation Research

The operations research expert has a wide array of methods and techniques available for solving problems.

1. Linear Programming. Linear Programming (LP) is a mathematical technique of assigning a fixed amount of resources to satisfy a number of demands in such a way that some objective is optimized and other defined conditions are also satisfied.

2. Transportation Problem. The transportation problem is a special type of linear programming problem, where the objective is to minimize the cost of distributing a product from a number of sources to a number of destinations.

3. Assignment Problem. Succinctly, when the problem involves the allocation of n different facilities to n different tasks, it is often termed as an assignment problem.

4. Queuing Theory. The queuing problem is identified by the presence of a group of customers who arrive randomly to receive some service. This theory helps in calculating the expected number of people in the queue, expected waiting time in the queue, expected idle time for the server, etc. Thus, this theory can be applied in such situations where decisions have to be taken to minimize the extent and duration of the queue with minimum investment cost.

5. Game Theory. It is used for decision making under conflicting situations where there are one or more opponents (i.e., players). In the game theory, we consider two or more persons with different objectives, each of whose actions influence the outcomes of the game. The game theory provides solutions to such games, assuming that each of the players wants to maximize his profits and minimize his losses.

6. Inventory Control Models. It is concerned with the acquisition, storage, handling of inventories so as to ensure the availability of inventory whenever needed and minimize wastage and losses. It help managers to decide reordering time, reordering level and optimal ordering quantity.

7. Goal Programming. It is a powerful tool to tackle multiple and incompatible goals of an enterprise.

8. Simulation. It is a technique that involves setting up a model of real situation and then performing experiments. Simulation is used where it is very risky, cumbersome, or time consuming to conduct real study or experiment to know more about a situation.

9. Nonlinear Programming. These methods may be used when either the objective function or some of the constraints are not linear in nature. Non-Linearity may be introduced by factors such as discount on price of purchase of large quantities.

10. Integer Programming. These methods may be used when one or more of the variables can take only integral values. Examples are the number of trucks in a fleet, the number of generators in a power house, etc.

11. Dynamic Programming. Dynamic programming is a methodology useful for solving problems that involve taking decisions over several stages in a sequence. One thing common to all problems in this category is that current decisions influence both present & future periods.

12. Sequencing Theory. It is related to Waiting Line Theory. It is applicable when the facilities are fixed, but the order of servicing may be controlled. The scheduling of service or sequencing of jobs is done to minimize the relevant costs. For example, patients waiting for a series of tests in a hospital, aircrafts waiting for landing clearances, etc.

13. Replacement Models. These models are concerned with the problem of replacement of machines, individuals, capital assets, etc. due to their deteriorating efficiency, failure, or breakdown.

14. Markov Process. This process is used in situations where various states are defined and the system moves from one state to another on a probability basis. The

probability of going from one state to another is known. This theory helps in calculating long run probability of being in a particular state.

15. Network Scheduling-PERT and CPM. Network scheduling is a technique used for planning, scheduling and monitoring large projects. Such large projects are very common in the field of construction, maintenance, computer system installation, research and development design, etc. Projects under network analysis are broken down into individual tasks, which are arranged in a logical sequence by deciding as to which activities should be performed simultaneously and which others sequentially.

16. Symbolic Logic. It deals with substituting symbols for words, classes of things, or functional systems. It incorporates rules, algebra of logic, and propositions. There have been only limited attempts to apply this technique to business problems; however, it is extensively used in designing computing machinery.

17. Information Theory. It is an analytical process transferred from the electrical communications field to operations research. It seeks to evaluate the effectiveness of information flow within a given system and helps in improving the communication flow. 

HUMAN RESOURCE MANAGEMENT

The term "Human Resource Management (HRM)" has been commonly used for about the last ten to fifteen years. Prior to that, the field was generally known as "personnel administration." The name change is not merely cosmetics.

Personnel administration, which emerged as a clearly defined field by the 1920s (at least in the US), was largely concerned the technical aspects of hiring, evaluating, training, and compensating employees and was very much of "staff" function in most organizations. The field did not normally focus on the relationship of disparate employment practices on overall organizational performance or on the systematic relationships among such practices. The field also lacked a unifying paradigm.

HRM developed in response to the substantial increase in competitive pressures American business organizations began experiencing by the late 1970s as a result of such factors as globalization, deregulation, and rapid technological change. These pressures gave rise to an enhanced concern on the part of firms to engage in strategic planning--a process of anticipating future changes in the environment conditions (the nature as well as level of the market) and aligning the various components of the organization in such a way as to promote organizational effectiveness.

Human resource management (HRM), also called personnel management, consists of all the activities undertaken by an enterprise to ensure the effective utilization of employees toward the attainment of individual, group, and organizational goals. An organization's HRM function focuses on the people side of management. It consists of practices that help the organization to deal effectively with its people during the various phases of the employment cycle, including pre-hire, staffing, and post-hire. The pre-hire phase involves planning practices. The organization must decide what types of job openings will exist in the upcoming period and determine the necessary qualifications

for performing these jobs. During the hire phase, the organization selects its employees. Selection practices include recruiting applicants, assessing their qualifications, and ultimately selecting those who are deemed to be the most qualified.

In the post-hire phase, the organization develops HRM practices for effectively managing people once they have "come through the door." These practices are designed to maximize the performance and satisfaction levels of employees by providing them with the necessary knowledge and skills to perform their jobs and by creating conditions that will energize, direct, and facilitate employees' efforts toward meeting the organization's objectives.

Milestones in the Development of Human Resource Management

Year Developments

1890-1910 Frederick Taylor develops his ideas on scientific management. Taylor advocates scientific selection of workers based on qualifications and also argues for incentive-based compensation systems to motivate employees.

1910-1930

Many companies establish departments devoted to maintaining the welfare of workers. The discipline of industrial psychology begins to develop. Industrial psychology, along with the advent of World War I, leads to advancements in employment testing and selection.

1930-1945

The interpretation of the Hawthorne Studies' begins to have an impact on management thought and practice. Greater emphasis is placed on the social and informal aspects of the workplace affecting worker productivity. Increasing the job satisfaction of workers is cited as a means to increase their productivity.

1945-1965

In the U.S., a tremendous surge in union membership between 1935 and 1950 leads to a greater emphasis on collective bargaining and labor relations within personnel management. Compensation and benefits administration also increase in importance as unions negotiate paid vacations, paid holidays, and insurance coverage.

1965-1985 The Civil Rights movement in the U.S. reaches its apex with passage of the

Civil Rights Act of 1964. The personnel function is dramatically affected by Title VII of the CRA, which prohibits discrimination on the basis of race, color, sex, religion, and national origin. In the years following the passage of the CRA, equal employment opportunity and affirmative action become key human resource management responsibilities.

1985-present

Three trends dramatically impact HRM. The first is the increasing diversity of the labor force, in terms of age, gender, race, and ethnicity. HRM concerns evolve from EEO and affirmative action to "managing diversity." A second trend is the globalization of business and the accompanying technological revolution. These factors have led to dramatic changes in transportation, communication, and labor markets. The third trend, which is related to the first two, is the focus on HRM as a "strategic" function. HRM concerns and concepts must be integrated into the overall strategic planning of the firm in order to cope with rapid change, intense competition, and pressure for increased efficiency.

THE DIFFERENCE BETWEEN HRM AND PERSONNEL MANAGEMENT

Some experts assert that there is no difference between human resources and personnel management. They state that the two terms can be used interchangeably, with no difference in meaning. In fact, the terms are often used interchangeably in help-wanted ads and job descriptions.

For those who recognize a difference between personnel management and human resources, the difference can be described as philosophical. Personnel management is more administrative in nature, dealing with payroll, complying with employment law, and handling related tasks. Human resources, on the other hand, is responsible for managing a workforce as one of the primary resources that contributes to the success of an organization.

When a difference between personnel management and human resources is recognized, human resources is described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency.

Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. By contrast, human resources involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the

continuous development of functions and policies for the purposes of improving a company’s workforce.

Personnel management is often considered an independent function of an organization. Human resource management, on the other hand, tends to be an integral part of overall company function. Personnel management is typically the sole responsibility of an organization’s personnel department. With human resources, all of an organization’s managers are often involved in some manner, and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel-related tasks.

As far as motivators are concerned, personnel management typically seeks to motivate employees with such things as compensation, bonuses, rewards, and the simplification of work responsibilities. From the personnel management point of view, employee satisfaction provides the motivation necessary to improve job performance. The opposite is true of human resources. Human resource management holds that improved performance leads to employee satisfaction. With human resources, work groups, effective strategies for meeting challenges, and job creativity are seen as the primary motivators.

When looking for a job in personnel management or human resources, it is important to realize that many companies use the terms interchangeably. If you are offered a job as a personnel manager, you may be required to perform the same duties as a human resource manager, and vice versa. In some companies, a distinction is made, but the difference is very subtle. FUNCTIONS OF HRM

TRADITIONAL SPECIALTY AREAS

Training/Development

Conducts training needs analysis; designs/conducts/evaluates training programs; develops/implements succession planning programs.

Compensation/Benefits

Develops job descriptions; facilitates job evaluation processes; conducts/interprets salary surveys; develops pay structure; designs pay-for-performance and/or performance improvement programs; administers benefits program.

Employee/Industrial Relations

Helps resolve employee relations problems; develops union avoidance strategies; assists in collective bargaining negotiations; oversees grievance procedures.

Employment/Recruiting

Assists in the HR planning process; develops/purchases HR information systems; develops/updates job descriptions; oversees recruiting function; develops and administers job posting system; conducts employment interviews, reference checks, and employment tests; validates selection procedures; approves employment decisions.

Safety/Health/Wellness

Develops accident prevention strategies; develops legal safety and health policies; implements/promotes EAP and wellness programs; develops AIDS and substance abuse policies.

EEO/Affirmative Action

Develops and administers affirmative action programs; helps resolve EEO disputes; monitors organizational practices with regard to EEO compliance; develops policies for ensuring EEO compliance, such as sexual harassment policies.

HRM Research

Conducts research studies, such as cost-benefit analysis, test validation, program evaluation, and feasibility studies.

NEW HRM SPECIALTY AREAS

Work and Family Programs

Develops and administers work and family programs including flextime, alternative work scheduling, dependent-care assistance, telecommuting, and other programs designed to accommodate employee needs; identifies and screen child- or elder-care providers; administers employer's private dependent-care facility; promotes work and family programs to employees.

Cross-Cultural Training

Translate the manners, mores, and business practices of other nations and cultures for American business people. Other cross-cultural trainers work with relocated employees' families, helping them adjust to their new environment.

Managed-Care

As a company's health-care costs continue to escalate, employers are embracing managed-care systems, which require employees to assume some of the costs. Employers hire managed-care managers to negotiate the best options for employees.

Managing Diversity

Develop policies and practices to recruit, promote, and appropriately treat workers of

HARD AND SOFT APPROACHES TO HRM

Human resource management (HRM) as described by Kleiman (2000) has a concept with two distinct forms; soft and hard approach, where the soft approach of HRM is associated with human relation and the hard on the other hand sees people as human resource.

The Soft HRM is the notion that workers respond better when an organisation recognises their individual needs and addresses them as well as focusing on the overall business objectives. The work of Maslow in stating that humans have a 'hierarchy' of needs, which they will exert considerable energy towards achieving, claims that organisations that recognises and addresses these needs will have a happier, more fulfilled, more loyal and productive workforce (SHRM Online). As argued by Noe (2006) the way to success is through deep empathy of other people either by observing how to best 'connect' with others in the workplace, and motivate and inspire them as a result. As illustrated by Simon (1960) all of these soft HRM can of course be balanced by hard HRM; the notion that successful organisations are those that best deploy their human resource in the way that they would deploy any other resource.

The Hard HRM on the other hand therefore sees people as human resources. Holding that employees are a resource in the same way as any other business resource and they must therefore be; obtained as cheaply as possible, used sparingly, developed and exploited as much as possible. As indicated by Kleiman (2000) under this model of HRM, control is more concerned with performance system, performance management and tight control over individual activities with the ultimate goal being to secure the competitive advantage of the organisation. The hard HRM therefore is primarily concern to promote human resource strategy and align with business strategy. It may also include out sourcing, flexibility, performance management, hence downsizing or work intensification, sees workers as another resource to be exploited and can operate against the interest of workers.

The Harvard model on the other hand as indicated by Lado and Wilson (1994) sees employees as resource, but human where the managers are responsible to make decisions about the organisation and employee relation. The employment relation is seen as a blending of business and societal expectations and because it recognises the role societal outcomes play, it could be argued that the Harvard model provides a useful basis for comparative analysis. The Harvard model also cover the four HRM policy areas which are human resource flows, reward system, employee influence, work system, which leads to the four Cs; competence of employees, commitment of employees, congruence of organisation/employees goals and cost effectiveness of HRM. As could be agued striving to enhance all four Cs could lead favourable consequences for individual well- being, societal well-being and organisational effectiveness either as long- term consequences.

Case Study

Mr. Batra, Human Resource Manager of TRUE WELL Group of companies approached

the CEO on 30th march, 2013 and apprised him of the absence of Mr.Ajay Vaidhya, Assistant Accountant in the Corporate Finance Department, for the past one month and

requested him to approve the show-cause notice to be saved to Mr.Ajay as per the Labour Laws in force.

The CEO told Mr.Batra: “When Mr.Ajay has been absent for the last one month , your duty is to go to Mr.Ajay,s house, find out the reason and solve the problem of Mr.Ajay, and not just to report the absence to me. Go immediately to Mr.Ajay,s house find the reason and report it to me before 5.oo P.M. today.” Mr. Batra immediately left for Mr.Ajay’s house and learnt from Mr.Ajay ‘s Wife that Mr.Ajay has been in distress as he has been trying to mobilise Rs.1,00,000 for the surgery of his sick wife in a reputed hospital in Chennai. Mr.Batra could meet Mr.Ajay around 3.PM and both of them then met the CEO. Both of them apprised the CEO the reason for the absence and distress of Mr.Ajay. The CEO immediately contacted the hospital and informed them that the company will pay Rs.1,00,000 tomorrow i.e., 31st March 2013 and requested the doctor to conduct the surgery for Ajay’s wife tomorrow itself. The CEO ordered Mr.Batra to arrange to issue a cheque for Rs.1,00,000 in favour of the hospital and also pay Rs.10,000 in cash to Mr.Ajay to meet incidental expenses as a grant. Mr.Ajay as well as Mr.Batra were surprised at the decision of the CEO Mr.Ajay became emotional and touched the feet of the CEO. The CEO told Mr.Batra:”Problems of our employees are the company’s problems. We treat the employees as human being and members of the company’s family.” This piece of news spread in the entire company within no time and the employees felt highly secured. The productivity level increased by 100% in the next quarter itself and sustained over the years to come. Questions:- 1. Why did Mr.Batra prefer to follow a legal approach to the problem? 2. Why did the CEO provide Rs.1,10,000 as just a grant to Mr.Ajay ? 3. What would be the morale of employee’s family members after this incident? 4. Suggest a suitable title for the above said case and justify that title. Solution 1. Why did Mr. Batra prefer to follow a legal approach to the problem? Solution: Mr.Batra preferred to follow a legal approach against Mr.Ajay for being absent from his job, for the following reasons • As Mentioned in the case by Mr.Batra noticed that Mr.Ajay kept himself absent from job without being informed the authorities which is not considered as a fair practice done by any employee as per Labour Law. • Mr.Ajay is working in an important department in the organisation ( corporate finance), his absence might affect the performance of the department.

• In the other hand remaining employees in the department are loaded with extra responsibility as they need to share the duties of Mr. Ajay which may created stress on them. • Above all if any legal action is not taken against Mr.Ajay this may lead to a bad example to other employees and among some of them may take an advantage of this. Hence by considering the above said reasons Mr.Batra preffered to follow a legal approach of issuing a Show cause notice to Mr.Ajay 2. Why did the CEO provide Rs.1,10,000 as just a grant to Mr.Ajay ? Solution: CEO Didnot approach the issue of an individual who didnot return to the job for more than one month. He realise that there must be an valid reason behind this. So he demand Mr.Batra to visit Mr.Ajay’s resident and find out the reason for his absence. When he get to know the issue he analysed it and considered it as an opportunity to make the employees realise that they are the assets of the organisation. And being a CEO employee’s well being and his family members well being matters for him. He also knows that the loyalty of the all the employees will be improve and this will ultimately increase the efficiency of the employees. Hence he granted Rs.1,10,000 to Mr.Ajay and his family which will benefit both Ajay and his family and also create a positive impact on the employees. There are so many benefits behind this grant some of those benefits are increased Job security, increased morale , strong loyalty, improve efficiency, employees family will have faith on the organisation, increased production output etc… Considering the above said benefits CEO granted the above said amount to Mr. Ajay. 3. What would be the morale of employee’s family members after this incident? Solution: The incident spread like an fire in the organisation and through the employees to their family also. After listening to this Ajay’s family members felt so thankful to the organisation especially to the CEO who considered their problem and helped to solve the issue. The concern of the CEO obvious saved a life in their family. Along with Mr.Ajay’s Family members the family members of other employees also felt that TRUE WELL is the safe place to work and it is safe not only to the employees but also to their family also. So the family members felt secured, loyal and very well satisfied about the organisation. 4. Suggest a suitable title for the above said case and justify that title. Solution: By reading the case one can judge or decide the Suitable title of the case as there is no restriction to it. Example title is “employee morale leads to improved efficeny” “ satisfied employees produce tremendous results” “

Short Questions

1. State the difference and similarities between Human resource management(HRM) and Personal management?

Answer: Similarities and differences between HRM and personnel management

Sl. No Similarities Differences 1 Personnel management strategies, like HRM

strategies, flow from the strategic business strategy.

HRM places more emphasis on fit and integration.

2 Personnel management, like HRM, recognizes that line managers are responsible for managing people. The personnel function provides the necessary advice and support services to enable managers to carry out their responsibilities.

HRM is based on a management and business-orientated philosophy.

3 The values of personnel management and at least the ‘soft’ version of HRM are identical with regard to ‘respect for the individual’, balancing (mutuality). organizational and individual needs, and developing people to achieve their maximum level of competence both for their own satisfaction and to facilitate the achievement of organizational objectives.

HRM attaches more importance to the management of culture and the achievement of commitment

4 Both personnel management and HRM recognize that one of their most essential functions is that of matching people to ever-changing organizational requirements – placing and developing the right people in and for the right jobs.

HRM places greater emphasis on the role of line managers as the implementers of HR policies.

5 The same range of selection, competence analysis, performance management, training, management development and reward management techniques are used both in HRM and in personnel management.

HRM is a holistic approach concerned with the total interests of the business – the interests of the members of the organization are recognized but subordinated to those of the enterprise.

6 Personnel management, like the ‘soft’ version of HRM, attaches importance to the processes of communication and participation within an employee relations system.

HR specialists are expected to be business partners rather than personnel administrators.

2. What is the importance of emotional intelligence in taking business decisions?

A leader has to have emotional intelligence to align personal and subordinate goals to accomplish company goals. A leader must implement four responsibilities at all levels of an organization. First, transfer ownership for work to the people who do the work. Second, create the environment where the transfer of ownership can take place, where each person wants to be responsible for his or her own performance. This entails painting a clear picture of what the company believes great performance is, for the company and each person; focusing individuals on the few great performance factors; developing in each person the desire to be responsible for his or her performance; aligning organization systems and structures to send a clear message as to what is necessary for great performance; engaging each individual’s heart, mind and hands in the business of the business; and energizing people around the business focus. Third, develop individual capability and competence. Fourth, create conditions in the organization that challenge every person to continually learn, including him or herself. These four principals align personal and company goals through emotional intelligence.

3. What is business research report? State the contents of a Business research report in brief.

Answer: The business research report can be as simple as a short report of a few pages giving the overall findings of the research, or it can be a long report with numerous parts.

MAIN PARTS OF A COMPLETE BUSINESS RESEARCH REPORT

1. Introduction to the Research.

This section of the Business research report provides a clear background and statement

of the research question and provides information about the objectives of the research.

2. Research Method: This section of business research report provides a

detailed explanation of research design and provides answers to many questions.

What types of research methods were used? What instruments were used for the

collection of data? How was the sample selected? What kind of statistical or non-

statistical techniques were used for data analysis? Finally, in this section of the

report the limitations encountered in the study should be presented.  

3. Findings: This section is probably one of the most important parts of the

Business research report. Provided in this section would be the results of the data

analyses and explanation of all the findings. At this point, all the raw data have been

analyzed and converted to meaningful information for management's use. This is the

section where the original Business research question is answered.  

4. Summary, conclusions, and recommendations: A concise yet

precise summary of major findings is generally included in this section of report,

followed by any recommendations that the researcher considers important and

meaningful.  

Qns No 4: Why Good corporate Image is important for an organisation? Elucidate.

Answer: Corporate reputation is a ‘soft’ concept. It is the overall estimation in which an organization is held by its internal and external stakeholders based on its past actions and probability of its future behavior. The organization may have a slightly different reputation with each stakeholder according to their experiences in dealing with the organization or in what they have heard about it from others.

Many organizations put the importance of a good reputation to the back of their minds while they attend to more hard-edged, day-to-day urgencies. On the other hand, many organizations consider their greatest asset to be their good name or reputation. This is especially true in knowledge-based organizations such as professional services firms in the consulting, legal, medical, and financial sectors and in universities. They work actively to build their good reputation, to build the ‘bank of goodwill’ towards them.

The main benefits of a good corporate reputation can be found in:

• Customer preference in doing business with a company with good image when other companies’ products and services are available at a similar cost and quality;

• The ability to charge a premium for products and services by a good imaged company in comparison to the competitors;

• Stakeholder support for the organization in times of controversy;

• High equity value resulting into good market capitalization.

Although reputation is an intangible concept, research universally shows that a good reputation demonstrably increases corporate worth and provides sustained competitive advantage. A business can achieve its objectives more easily if it has a good reputation among its stakeholders, especially key stakeholders such as its largest customers, opinion leaders in the business community, suppliers and current and potential employees.

Qns No 5: What is Decision tree used in Managerial Decision making? Explain.

Answer: A decision tree shows a complete picture of a potential decision and allows a manager to graph alternative decision paths. Decision trees are a useful way to analyze hiring, marketing, investments, equipment purchases, pricing, and similar decisions that involve a progression of smaller decisions. Generally, decision trees are used to evaluate decisions under conditions of risk.

The term decision tree comes from the graphic appearance of the technique that starts with the initial decision shown as the base. The various alternatives, based upon possible future environmental conditions, and the payoffs associated with each of the decisions branch from the trunk.

Decision trees force a manager to be explicit in analyzing conditions associated with future decisions and in determining the outcome of different alternatives. The decision tree is a flexible method. It can be used for many situations in which emphasis can be placed on sequential decisions, the probability of various conditions, or the highlighting of alternatives.

Multiple Choice Questions

1. Which of the following business research methods have the opportunity to ask follow-up questions?

a. Interview b. Survey c. Case studies d. Focus Groups

2. Business research process has several steps namely I. Identifying and Defining Problem/Opportunity

II. Planning the Research Design & Selecting a Research Method III. Data Collection & Evaluating the Data IV. Preparing and Presenting the Research Report

Which of the following is the correct sequence of business research process? a. I,II,III and IV b. II,III,I and IV c. I, II, IV and III d. IV,III,I and Ii

3. Which of the following is operation research technique?

I. Linear Programming II. Group Dynamics III. Assignment

The options are a. I and II b. II and III c. I and III d. I, II and III

4. The ability to recognize and manage own and others’ emotions is known as:

a. Managerial effectiveness b. Emotional intelligence c. Image building d. Leadership

5. The moral codes that govern behavior of a person or group of people regarding what is right and wrong is known as

a. Law b. Rules c. Procedures d. Ethics

6. The evaluation (respect, esteem, estimation) in which an organization’s image is

held by people is known as: a. Corporate Identity b. Corporate Image c. Corporate effectiveness d. Corporate communication

7. Managing the workforce that contributes to the success of an organization is known as

a. Personal Management b. Human resource Management c. Human resource Planning d. Human resource Development

8. In the era of Globalization and increased competition, the life cycle of a product has:

a. Increased b. Shortened c. Completed d. Got complicated

9. The technique used for planning, scheduling and monitoring large projects is known as:

a. Assignment b. Linear Program c. PERT and CPM d. Simulation.

10. The objective of ---------------is to minimize the cost of distributing a product from a

number of sources to a number of destinations. a. Transportation b. Assignment c. Queuing Theory d. Network Analysis